Question

The Jasper Corporation provides you with the following information for the year ended 12/31/17:

                                                                                        Income Statement Information:

                 Sales Revenue                                                                                                                               $300,000

                 Cost of goods sold                                                                                                                              80,000

                 Gross margin                                                                                                                                     220,000

                  Depreciation expense                                    47,000

                  Uncollectible accounts expense                      1,500

                  Pension expense                                             19,000

                 Other expense                                                  25,500

                 interest expense                                               3,000

                 gain on the sale of equipment                          (2,000)

                 income tax expense                                         65,000                                                                        159,000

                        Net income                                                                                                                                    $61,000

                                                                                      Balance Sheet Information:

                                                                                                                     12/31/16                               12/31/17

Cash                                                                                                              $16,000                              $36,000

Accounts Receiveable                                                                                     56,000                                52,000

Allowance for Doubtful Accounts                                                                     (6,000)                               (5,000)

Inventory                                                                                                           83,000                                84,000

equipment                                                                                                         85,000                                 82,000

Accumulated Depreciation                                                                                (6,000)                                (7,000)

            Total                                                                                                      $228,000                            $242,000

Accounts Payable                                                                                             $36,000                              $46,000

incomet taxes payable                                                                                       66,000                                 48,000

interest payable                                                                                                  2,000                                   1,000

notes payable, long term                                                                                    30,000                                     0

Accrued Pension Liability                                                                                     4,000                                   2,000

Deferred Tax Liability                                                                                            14,000                                18,000

Common Stock, no par                                                                                          70,000                                  80,000

Retained Earnings                                                                                                    6,000                                   47,000

          Total                                                                                                               $228,000                             $242,000

Additional Information:

       Equipment costing $66,000 was sold. New equipment was purchased, and $10,000 of common stock was issued in partial payment for the new equipment.

REQUIRED: Prepare a Statement of Cash Flows for Jasper Corporation for 2017 using the direct method. (You must prepare all supplementary schedules that would be required disclosures under the direct method.)

Answer 1